RH Reports Strong Q2 Earnings and Raises Fiscal 2026 Outlook
Ralph Lauren (NYSE:RH) reported second-quarter fiscal year 2026 results that exceeded expectations, with revenue reaching $922.2 million—up 2.6% from the previous year—and a normalized adjusted EBITDA margin of 13.4%. The company generated $72.3 million in cash during the quarter and raised its full-year outlook to reflect expected growth between 5.5% and 7%, with an adjusted EBITDA margin range of 15%–16.2%. Tariff refunds contributed significantly, providing a total benefit of $55.1 million for Q2 alone. RH also announced plans for RH Estates, a new high-end furniture collection that is expected to expand the company's addressable market and eventually represent half of its product offerings. The initiative carries price points 45% higher than existing products and is projected to be margin accretive as inventory expands. Despite ongoing international pre-opening costs and supply-chain pressures, management remains optimistic about long-term growth prospects. The company expects continued benefits from tariffs in the second half of fiscal 2026—adding $13.9 million—and plans to use these funds to offset rising oil-related expenses due to Middle East tensions.
Topics: cash_flow ebitda growth_initiatives revenue